The problem
Paper stamp cards get lost in coat pockets, and they tell you nothing about who your regulars are. If 10 regular food purchases a month go to the supermarket instead, at $53£40€48A$77C$75 each, that's $532£400€476A$768C$752 a month of sales a pet shop could have kept.
What the AI does
Square Loyalty is a loyalty scheme run from Square's point of sale: customers join with their phone number at the till, earn points and redeem the rewards you set. It's priced per location by loyalty visits a month (an enrollment, a point earned or a reward redeemed): $33£25€30A$48C$47 for up to 500 and $60£45€54A$86C$85 for 501 to 1,500. Set one simple reward, such as a bag of treats after 10 food purchases, and let the till do the counting.
A worked example
A pet shop in Shrewsbury uses Square at the till and runs paper stamp cards for dog food, with about 400 stamps and rewards a month.
Before
Paper stamp cards; about 10 regular food purchases a month lost to the supermarket at $53£40€48A$77C$75
After
If the scheme brings back 5 of those 10 a month: $266£200€238A$384C$376 a month of extra sales
What it's worth
About $67£50€60A$96C$94 a month in profit, at an assumed 25% margin after rewards on $266£200€238A$384C$376 of extra sales (5 purchases at $53£40€48A$77C$75). Square Loyalty is $33£25€30A$48C$47 a month for up to 500 loyalty visits, so the net is about $33£25€30A$48C$47.
How to set it up
- Check you're on Square point of sale; Square Loyalty needs it.
- Start the 30-day free trial and set one simple reward, such as treats after 10 food purchases.
- Ask customers at the till if they'd like to join with their phone number, and say what it's used for.
- Watch your monthly loyalty visits so you know which price band you're in.
- After 3 months, compare repeat food purchases with the months before.
What goes wrong
- Price bands go by loyalty visits; a busy month over 500 moves you to $60£45€54A$86C$85.
- Sending marketing texts or emails to members needs their consent under PECR.
- Rewards cost margin; on low-margin food, reward with treats or toys that carry a better margin.